Equipment is purchased for $80,000. It has an 8 year useful life and $39000 residual value. Under the doubl-declining-balance method, what is the depreciation expense for year 3?

a. 6,000
b. 48,000
c. 11,250
d. 8,436

I keep coming up with 11250 but according to the teacher the answer is 6,000. I can't figure out what I'm doing wrong.

Thanks

Because your accumulated depreciation cannot exceed its useful value. 80000-39000=41000-20000(1st)-15000(2nd)=6000, not 11250.

Still need to watch out even you know how to use the double declining method, here is a trick trying to get you. Read you textbook, there must be one line saying that you cannot over-depreciate.